The Midland, Mich.-based silicone material manufacturer said the
bankruptcy filing, which shields it from creditors while it gets its
financial affairs in order, was the only way to avoid being overwhelmed by
soaring legal costs.

Some of the 400,000 women who expect to draw money from the settlement
fund or who decided to pursue separate legal claims against the company
accused Dow Corning of stretching out the process to avoid bad publicity
and perhaps force women who need the money urgently to settle for smaller
amounts.

"A lot of women were relying on the money to have their breast implants
removed and now that money will not be forthcoming," said Sybil Goldrich, a
woman suing for damages after her implants failed.

Dow Corning officials denied the charges, and said their plight
underlined the need for Congress's current effort to overhaul product
liability law. "We had to take this action now to preserve both the
fundamental strength of our business operations and our ability to fairly
compensate all women with breast implant claims," said Dow Corning Chairman
Richard A. Hazelton.

The Dow Corning decision leaves in doubt the future of the settlement
reached last year that would have paid participating women from $140,000 to
$1.4 million each, depending on the nature and severity of their
symptoms.

Dow Corning officials said they hope the financial reorganization plan
they file will still include the $2 billion they promised to contribute to
the settlement fund. Three other companies involved in silicone implant
production - Bristol-Myers Squibb Co., 3M Co. and Baxter Intl. Inc. - have
promised to give money to the fund, although a rush of new claims led a
federal judge to conclude that $4.2 billion will not be enough.

Although about 400,000 women agreed to accept the fund's restrictions,
at least 11,000 others did not. Their individual lawsuits created an
unpredictable element that Dow Corning - the smallest of the four companies
- said it could not handle.